Effects of Venture Capital Networks on IPOs Earnings Management

This paper aims to explore the relationship between venture capital network and earnings management of IPO enterprises, considering that venture capitals always cooperate to support them. We use discretionary accruals as the indicator of earnings management and social network analysis to capture venture capital network centrality with a sample of 228 listed companies. The empirical results show that the degree centrality is positively related to earnings management, meanwhile, the closeness centrality and betweenness centrality have no significant effects on earnings management.